Overview

• Lloyds said an additional provision is likely following its initial review of the FCA’s proposals and indicated the amount may be material.
• The bank already holds a £1.2bn reserve tied to its Black Horse motor finance business.
• The FCA estimates about £8.2bn in payouts based on roughly 85% participation, rising to around £11bn including implementation, for agreements sold between 2007 and 2024 over commission disclosure failings.
• Lloyds shares fell about 3.5% on Thursday morning after the update, following a rise on Wednesday when investors welcomed the regulator’s lower‑than‑feared cost range.
• Analysts warned of heavy governance and data demands under the scheme, while Shore Capital estimated industry provisions at roughly £2bn so far, implying further charges are likely.